Due diligence period moves forward between MRH and SCL Health
The negotiation process between Memorial Regional Health and SCL Health continues to move forward.
In the midst of a due diligence process with SCL Health, which runs until the middle of March, MRH is currently trading information with the healthcare organization as the two sides move closer to an acquisition of the operations and purchase and/or lease the assets of MRH on mutually agreed upon terms. Those assets include the hospital, affiliated clinics and land.
On Dec. 19, MRH’s Board of Trustees unanimously approved moving into a letter of intent agreement with SCL Health.
“So far, we’ve been inundated with lots of requests for lots of information,” MRH CEO Andy Daniels said at last Thursday’s BOT meeting. “It can be quite overwhelming between accounting, human resources, administration, Julie [Hanna, Executive Assistant to CEO] and others,” Daniels added.
“It’s a lot of data to come up with or find in the format they’re looking for and transfer to them. By the end of March, should the project stay on schedule, SCL Health will come back to you [the BOT] with a final agreement, so to speak. You’ll have to either accept or reject that final agreement, and then there will be a final two-month window for closing.”
Daniels added that it’s sort of like buying a house as once a contract is in place, there will be a closing process.
“If it goes forward, the whole process will not conclude until the end May or the beginning of June,” Daniels said.
At this time, no financial terms have been traded between SCL Health and MRH, but all signs point towards SCL Health purchasing and/or leasing MRH later this year. The hospital would be leased, according to Daniels, while other land and clinics would be purchased or leased, depending on SCL Health’s offer.